Global blockchain automotive market will experience exponential growth in the next 10 years. This is according to a new report from ReportLinker which has projected that blockchain market in automotive and aerospace fields will surpass $20 billion by 2029.
The forecasts also indicate that blockchain application in both industries will see tremendous growth in the next decade. Factors that are driving this growth include transparency, cost efficiency, speed of transaction settlement and the desire to reduce risks and fraud in the sector.
Blockchain automotive market growth
According to the report, key areas that are dominating blockchain use in automotive are finance, payments and insurance services. In the aviation industry, manufacturing and supply chain applications continue to dominate the market. The rapid growth witnessed in the aviation industry has led to an increase in demand for aircraft which in turn is causing issues such as lack of transparency and high costs of production to emerge.
Despite this, the set of problems faced by both industries overlap. As a result, the implementation of blockchain in the two sectors is mostly in the areas of manufacturing and supply chain.
The report also highlights that there are some key factors that could hinder the blockchain automotive market growth. These include lack of regulations, standards, and infrastructure as well as inadequate technical expertise and awareness among industry players.
However, it is expected that the transition from car ownership to MaaS (mobility as a service) and increasing implementation of blockchain in the automotive industry will open up more opportunities for market growth.
Private blockchain dominance
In addition to the blockchain use cases, the report also predicts that current top private blockchains will continue to exert their dominance throughout the 10 year period. The reason for this that private blockchains offer more benefits than public and hybrid blockchains. Some of these advantages include advanced security, permissioned networks, and better speed.
Moreover, the report highlights that North America is likely to take the leading role in promoting blockchain adoption in automotive and related industries. This is mainly because the region is boosted by a thriving autonomous and connected vehicles market, intelligent transportation system, and MaaS industry.
Lastly, global players currently implementing blockchain in automotive include IBM, Accenture, ConsenSys, Microsoft, Amazon, Ripple, among others.